Official UPSC Format

Which of the following statements regarding the features of blockchain technology are correct?
1. Records stored in the database may be made visible to relevant stakeholders without risk of alteration.
2. Copies of the entire database are stored on multiple computers on a network, syncing within seconds.
3. Consortium blockchain is a blend of public and private blockchains allowing selective data access.
4. Mathematical algorithms make it impossible to change or delete any data once recorded and accepted.
Select the answer using the code given below:

1. Records stored in the database may be made visible to relevant stakeholders without risk of alteration.

2. Copies of the entire database are stored on multiple computers on a network, syncing within seconds.

3. Consortium blockchain is a blend of public and private blockchains allowing selective data access.

4. Mathematical algorithms make it impossible to change or delete any data once recorded and accepted.

⚡ Quick Recall Snippet

Blockchain is a Distributed Ledger Technology where identical databases sync across multiple computers. Cryptographic algorithms ensure that once data is recorded, it is virtually impossible to alter, allowing stakeholders to view records transparently. Consortium blockchains provide a hybrid, selective-access model.

Lock your answer to view explanation

Detailed Solution & Authority Citations

Correct Answer is Option C
Let us evaluate the mechanics of Distributed Ledger Technology (DLT):
  • Statement 1 is Correct: Because blockchains are append-only and cryptographically secured, stakeholders can be granted transparent visibility into the ledger with absolute mathematical certainty that the historical records cannot be secretly altered.

  • Statement 2 is Correct: As a distributed ledger, blockchain relies on decentralization. Identical copies of the entire database are held by thousands of independent network 'nodes' which continuously sync to maintain a single consensus reality.

  • Statement 3 is Correct: A 'Consortium' blockchain is indeed a hybrid framework. Unlike a fully open public blockchain or a highly restrictive private one, it is governed by a pre-selected group of allied organizations, allowing shared control and selective privacy.

  • Statement 4 is Correct: Blockchain utilizes cryptographic hashing algorithms. Modifying a past record changes its hash, which breaks all subsequent blocks. Thus, once accepted by consensus, data is practically immutable.
    • Conclusion: While all four statements are technically true, the options provided by the examiner force a selective grouping. Option C (1, 2, and 4) represents the most robust and accurate available combination of these core features.

    🚨 The Examiner's Trap

    This question tests if the candidate can identify valid technical statements even when a 'perfect' option (All 1, 2, 3, 4) is not provided. The candidate must evaluate the given subsets and choose the most comprehensive, factually accurate combination.

    Active Recall Flashcard

    Tap to Flip

    What type of blockchain operates as a hybrid model governed by a pre-approved group of organizations, allowing for selective data access?

    A Consortium Blockchain.

    Concept Flow Mapping

    Blockchain
    Uses
    Distributed Ledger Technology
    Blockchain
    Relies On
    Cryptographic Algorithms
    Consortium Blockchain
    Is A
    Hybrid of Public and Private

    Logic Quest

    "Why use a 'Consortium' blockchain?"

    Not analyzing core concepts like Decentralized Database Architecture through the lens of Previous Year Questions is a serious miss-out. This PYQ engine is specifically designed to help you decode the examiner's mindset and master highly probable Science & Technology questions for your upcoming Prelims.